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Sherwin-Williams (Stores Division)
Background
- 1400 store retail chain
- Nearly went into Chapter 11 two years before project commenced.
- Two years of extensive cost cutting to return to positive cash flow.
Case for Action
- Growth. Now that the organization case situation was stabilized, there were two primary reasons to shift the emphasis to growth:
- Regain market share which had slipped during the crisis.
- Improve profitability and return on net assets.
- Highly variable performance of stores, not necessarily linked to market.
- Need to implement a major shift in strategy, which included expanding the product line and entering the wholesale market.
The Approach
- Conduct Organization Scan
- District Level and 135 District Managers key to implementation of the new strategy. New strategy radically redefined District Managers job.
- Design and implementation components of a “performance infrastructure” to support the new strategy and growth plans, including:
- Roles and Responsibilities necessary to support new strategy.
- District Level Performance System
- Identified, redefined key processes
- Job Models for District Managers and District Staff
- Measures – Stores and Districts.
- District Planning System
- Performance Management System
- Outside Sales and Outside Sales Management Systems.
- Store Manager Training and Development System
- Store Processes
- Learner Controlled Instruction Training Model
- Store Management System
The Results
- New strategy successfully implemented.
- A major economic recession occurred following implementation. However, Sherwin-Williams Stores Division sales did not decline and they regained market share, which they attributed to having the new Field Performance System in place.